EX-99 3 a4361155ex99.txt EXHIBIT 99.1 PRESS RELEASE DATED MARCH 21, 2003 Exhibit 99.1 Interleukin Genetics Reports Fourth Quarter Financial Results WALTHAM, Mass.--(BUSINESS WIRE)--March 21, 2003--Interleukin Genetics, Inc. (OTCBB: ILGN) today reported financial results for the quarter and year ended December 31, 2002. For the quarter, the Company reported a net loss of $1,080,000 or $0.05 per basic and diluted share as compared to a net loss of $1,101,000 or $0.05 per basic and diluted share for the same period last year. For the twelve-month period, the Company reported a net loss of $5,306,000 or $0.24 per basic and diluted share compared to a loss of $4,523,000 or $0.21 per basic and diluted share last year. Revenues for the quarter were $188,000 compared to $19,000 in the fourth quarter of 2001. For the twelve months ended December 31, 2002, the Company reported revenues of $290,000 compared to revenues of $203,000 in 2001. The increase in revenue during the three and twelve months periods was due to a $250,000 technology option fee received by the Company. Of this total $179,000 of revenue was recorded during the fourth quarter. Research and development expenditures were $578,000 in the quarter ended December 31, 2002 compared to $636,000 in the comparable quarterly period ended December 31, 2001. Research and development expenses for the year were $3,082,000 compared to $2,687,000 last year. The year over year increase was primarily the result of increases in personnel and subcontract costs associated with our research projects. Selling, general and administrative expenses were $569,000 and $2,333,000 for the three and twelve-month periods ended December 31, 2002 compared to $503,000 and $2,244,000 during the same periods last year. The increase in selling, general and administration costs were primarily due to increases in legal expenses related to financing efforts. As of December 31, 2002, the Company reported total assets of $1,250,000, including $734,000 in cash and cash equivalents. The Company also reported total liabilities of $2,634,000 and a negative net worth of $1,385,000. On March 5, 2003, subsequent to the fiscal year end, the Company announced that it entered into a broad strategic alliance with several affiliates of the Alticor family of companies to develop and market novel nutritional and skin care products. The alliance includes an initial $7,000,000 equity investment, with an additional $2,000,000 payment possible if we achieve certain milestones, a two-year, $5,000,000 research and development agreement and a licensing agreement with royalties on any marketed products. The agreement also includes a working capital credit line of $1,500,000 and the deferment of outstanding loan repayment and the refinancing of bridge financing obligations. With this agreement the Company anticipates that it will have sufficient resources to conduct operations as planned at least through early 2005. About Interleukin Interleukin Genetics is a biotechnology company focused on inflammation. The company uses functional genomics to develop diagnostic nutritional and therapeutic products based on the genetic variations in people to help prevent or treat diseases of inflammation. Interleukin's TARxGET (Translating Advanced Research in Genomics into more Effective Therapeutics) programs focus on the areas of cardiovascular disease, osteoporosis, rheumatoid arthritis and alzheimer's disease. These products will personalize the selection of nutritional and therapeutic products and enable the managed care industry to improve patient care and better allocate resources. For more information about Interleukin and its ongoing programs, please visit http://www.ilgenetics.com Certain statements contained herein are "forward-looking" statements including statements regarding the development and marketing of novel nutritional and skin care products, royalties and milestone payments that we may receive, the availability of credit facilities, the sufficiency of resources to conduct planned operations through early 2005 and our ability to develop diagnostic personalized nutritional and therapeutic products to prevent or treat diseases of inflammation and to enable the managed care industry to improve patient care and better allocate resources. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, our ability to develop diagnostic personalized nutritional and therapeutic products to prevent or treat diseases of inflammation and to enable the managed care industry to improve patient care and better allocate resources, our ability to market products, our ability to achieve the milestone that would result in an additional $2.0 million payment, our ability to receive advances against the $1.5 million working capital credit line, the actions of Alticor and affiliates, which have voting control of our common stock on most matters, including the efforts and success of Alticor and its affiliates in developing and marketing products for which we would receive a royalty, our ability to conduct planned operations through early 2005, our ability to complete clinical research and data analysis, meeting our clinical studies' endpoints, risk of market acceptance of our products, risk of technology and products obsolescence, delays in development of products, reliance on partners, competitive risks and those risks and uncertainties described in our Form 10-Q for the quarter ended September 30, 2002, as filed on November 7, 2002, and in other filings made by us with the Securities and Exchange Commission. We disclaim any obligation or intention to update these forward-looking statements.
Interleukin Genetics, Inc. Financial Highlights (unaudited) Balance sheet data December 31, December 31, 2002 2001 Cash, cash equivalents and marketable securities $ 733,848 $ 3,922,736 Total current assets 836,988 4,102,154 Total assets $1,249,779 $4,393,126 Total current liabilities 1,116,017 831,487 Total liabilities 2,634,339 842,578 Total shareholders' equity (1,384,560) 3,550,548 Total liabilities and shareholders' equity $1,249,779 $4,393,126
Twelve Twelve Three Months Three Months Months Months Ended Ended Ended Ended Statement of December 31, December 31, December 31, December 31, operations data 2002 2001 2002 2001 Sales $187,679 $19,019 $ 289,908 $ 202,942 Gross profit 187,636 13,732 289,424 154,268 Research and development 578,352 635,955 3,082,484 2,686,621 Selling, general, and administrative expense 568,971 503,043 2,333,314 2,244,274 Total operating expense 1,147,323 1,138,998 5,415,798 4,930,895 Loss from operations (959,687) (1,125,266) (5,126,374) (4,776,627) Total other income and expense (120,433) 24,631 (179,745) 253,921 Net loss $(1,080,120)$(1,100,635)$(5,306,119)$(4,522,706) Basic and diluted loss per share $ (0.05) $ (0.05) $ (0.24) $ (0.21) Weighted average common shares outstanding 22,550,591 21,426,762 21,713,432 21,049,437
CONTACT: Interleukin Genetics, Inc. Fenel M. Eloi, 781/398-0700